If property is at the top of your Christmas wishlist, you’ve likely already considered whether to buy now or wait until 2025.
And with rates forecasted to drop in 2025, it’s a question worth asking.
A glimpse into Sydney’s current property climate points to a buyer’s market on the horizon, with home values falling by 0.1% in October 2024 – the first decline since January 2023 – according to CoreLogic data.
It comes with an increased number of properties being listed for sale, as well as a lack of affordable housing options driving would-be buyers out of the market.
So with greater choice of homes for sale, as well as a lower volume of homeseekers, is the magic bullet to act now?
If you plan to buy before Christmas
Of course, timing the market is never a guarantee, but there’s certainly benefits of diving in this season. Rate cuts will eventually arrive, but this will also be the right condition to ‘boost’ buyer confidence – attracting more buyers to the market, and likely resulting in greater competition and higher sale prices.
For many homeseekers, the possibility of securing a new home to move into before Christmas and the start of the new school year is a jackpot of its own; it makes perfect ‘family sense’, in terms of providing time to move, settle in and start the new year fresh – without needing to worry about property hunting or dodging the January competition.
Let’s not forget it’s that ideal time of the year too; spring to summer is real estate prime time, when gardens are lush, the temperature is mild, the winter lull is over, and sellers are naturally more driven to list and showcase their home in the best possible light.
What about waiting until 2025?
Despite there being a likelihood of more favourable market conditions due to rate cuts, there’s also the possibility of this being impacted by further cost of living issues; borrowing and buying could very well be more expensive than what it is today.
All in all, don’t wait for a ‘bargain’ – although we can expect to see market shifts next year, there’s never a guarantee of positive outcomes for buyers.
As the saying goes, you marry the house but date the rate; you may be committing to a long term relationship with the property you choose to buy, but you can always take advantage of future lower rates by refinancing your mortgage down the track!
Don’t just try and capitalise on trends.
The best takeaway is always to buy according to your own needs – what you can afford right now and in the foreseeable future. Regardless of when the dotted line is signed, equity will grow in the long run, as long as you ride the market waves by continuing to make down payments on your principal and interest.
The property you buy will likely never be cheaper than what it is today – provided that you don’t plan on selling it in the short term.
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
